This story tells of Nicholas, the orphan, who later becomes a clergyman and takes it upon himself to give gifts to other orphans on the Festival of Christ. He later became a Bishop, all the while continuing this tradition. At some point he stumbles upon a dwarf village of expert craftsmen and toy makers, whose primary means of transport is by sleigh and reindeer (you see where this is going?). It tells of how he became Saint Nicholas. And in the fervent chanting of his name, "Saint Nicholas" morphs to become "Santa Claus" (give it a try).